October 24, 2019 / 3:27 AM / a month ago

Morning News Call - India, October 24

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    
    INDIA TOP NEWS
    • India announces $8 billion plan to revive loss-making state telecoms firms
    India announced an almost $8 billion plan on Wednesday to help loss-making
state telecom providers Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone
Nigam Ltd (MTNL) catch up with private competitors, including a merger of the
two companies.
    • Risk of contagion in India's financial sector rising - rating agencies
    There is rising risk of contagion in India's banking sector with many
finance companies having lost more than half of their equity value in the past
year, rating agency Standard & Poor's said on Wednesday.
    • Malaysia in talks with India, other countries on palm oil sales - minister
    Malaysia is in talks with India and other countries to urge them to continue
buying Malaysian palm oil, its trade minister said, after calls for a boycott of
the commodity by Indian traders.
    • India eases fuel retail rules, allows entry of non-oil firms
    India on Wednesday relaxed its rules for setting up fuel stations in the
country after a gap of 17 years, opening to non-energy companies a sector long
eyed by global oil majors.

    
    GLOBAL TOP NEWS
    • EU keeps UK waiting on Brexit delay, Johnson gears for an election
    EU member states on Wednesday delayed a decision on whether to grant Britain
a three-month Brexit extension, while Prime Minister Boris Johnson said if the
deadline is deferred to the end of January he would call an election by
Christmas.
    • Japan factory activity shrinks at quickest pace since 2016 in October -
flash PMI 
    Japanese factory activity shrank at the fastest pace in over three years in
October, largely hurt by slumping new orders and output, in yet another sign of
broadening economic cracks in the face of slowing global demand and trade
frictions.
    • Facebook's Zuckerberg grilled in U.S. Congress on digital currency,
privacy, elections
    Facebook CEO Mark Zuckerberg conceded on Wednesday that the company's
planned digital currency Libra was a "risky project," but sought to reassure
skeptical U.S. lawmakers that it could lower the cost of electronic payments and
open up the global financial system to more people.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% higher at 11,672.00.
    • The Indian rupee is expected to gain against the U.S. currency amid a
weaker dollar index as investors awaited fresh Brexit developments.
    • Indian government bonds are likely to fall in early session tracking
overnight gains in crude oil prices. The yield on the benchmark 7.26% bond
maturing in 2029 is likely to trade in a range of 6.67%-6.72% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks edged higher on Wednesday as investors shrugged off lackluster
quarterly reports from industrial bellwethers Boeing and Caterpillar, though a
lower-than-expected revenue outlook from Texas Instruments sent chipmakers
shares lower.
    • Asian shares pulled ahead as corporate earnings and a ceasefire in
northern Syria helped prop up sentiment, though the backdrop of trade and brexit
uncertainties was enough to prevent a decisive shift towards riskier asset

    • The British pound stabilised as the Brexit project entered a fresh holding
pattern, while the dollar held firm as traders took a breather from Sino-U.S.
trade headlines.
    • U.S. Treasury yields recovered from session lows to close little changed
on Wednesday in generally thin trading, as investors consolidated positions amid
an overall lack of new catalysts to spur the market in either direction.
    • Oil prices dipped on lingering concerns about a weak demand outlook, after
surging more than 2% in the previous session on the back of a surprise draw in
U.S. crude stocks.
    • Gold held ground above $1,490 per ounce as investors awaited clarity on
Brexit after the European Union delayed a decision on granting an extension to
Britain, and the U.S. central bank policy meeting for clues on the interest rate
trajectory.
    
                CLOSE        FII             EQUITIES        DEBT
                               INVESTMENTS                   
 PNDF spot      70.90/70.93  October 23      (1,073.90)      318.36 crore
                                               crore         
 10-yr bond     6.68%        Month-to-date   4,004 crore     740 crore
   yield                                                     
                             Year-to-date    60,189 crore    29,926 crore
 
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)
    
    
    For additional data:
    India govt bond market volumes                 
    Stock market reports                
    Non-deliverable forwards data              
    Corporate debt stories               [IN CORPD]
    Local market closing/intraday levels [IN SNAPSHOT]
    Monthly inflows                      [INFLOWS RTRS TABLE IN]
    
    
   ($1 = 70.71 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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